Directions : In each of the following questions a statement is given, followed by three conclusions. Give answer : Statement : “To make the company commercially viable, there is an urgent need to prune the staff strength and borrow money from the financial institutions.” – Opinion of a consultant. Assumptions : I. The financial institutions lend money for such proposals. II. The product of the company has a potential market. III. The employees of the company are inefficient.

The correct answer is: Only I and II are implicit.

The statement says that the company needs to prune its staff strength and borrow money from financial institutions in order to become commercially viable. This implies that the company is currently not commercially viable, and that it needs to make some changes in order to become so.

The first assumption, that financial institutions lend money for such proposals, is implicit in the statement. If financial institutions did not lend money for such proposals, then the consultant would not have suggested it as a solution.

The second assumption, that the product of the company has a potential market, is also implicit in the statement. If the product of the company did not have a potential market, then there would be no point in borrowing money to expand the company.

The third assumption, that the employees of the company are inefficient, is not implicit in the statement. The statement only says that the company needs to prune its staff strength, not that the employees are inefficient. It is possible that the company needs to prune its staff strength for other reasons, such as a decline in sales or a change in the company’s business strategy.

Therefore, the correct answer is: Only I and II are implicit.